A & W Restaurants Franchise

A & W Restaurants Franchise

A & W restaurants were founded in 1919. The company was originally started by Roy W. Allen and Frank Wright. Their specialty was in selling beer, but after further thought they established a restaurant serving French fries, hotdogs and burgers etc. They first started franchising in 1925.

A & W Restaurants comes under the umbrella of parent company Yum! Brands (NYSE: YUM); this company also owns Taco Bell, Long John Silver, KFC and Pizza Hut. All these restaurants are very well known among the people and have numerous successful franchises worldwide. Currently all these restaurants are looking for franchisees to expand their business.

A & W Restaurants Franchise setup

At the time of writing they have 363 U.S franchises and 264 foreign franchises. In 2010 A & W was ranked as 289th in Franchise 500 rank. In 2009 it was ranked at 199, in 2008 it was ranked as 311 and it 2006 it was ranked at 245.

Benefits of Running an A & W Franchise

A & W restaurants provide world class opportunities from individuals, along with intensive training sessions. Along with this it provides marketing and ongoing support. Marketing support is provided in the form of advertising, regional advertising and ad slicks. It also helps with the stores grand opening. Ongoing support is provided in the form of meetings, toll free phone line, grand openings, field operations and evaluations, help in purchasing cooperatives, etc.

The benefits of acquiring an A & W franchise are that you are certain to gain profits through franchising; secondly you get to have one of the best trainings. A & W have professional trainers who have an experience of 20 years.

They are seeking franchisors nation wide and outside U.S especially Asia. As there are not many franchises in Asia A & W is playing special attention to the Asian region and is welcoming applications from individuals with the qualification to run the franchise.

Costs and Financial Requirements of associated with running an A & W Franchise

The total investment required for this franchise ranges between $1,039,000 – $1,623,500 depending on the size and location of the restaurant. The franchising fee is $20,000 with an ongoing royalty fee of 5%. The terms of agreement are 20 years renewable.

The training is available at the headquarters for 2 weeks. The trainers are experienced and provide intensive training to the franchisees. Even people who have prior experience have to go through the training sessions as this enables everyone to be fully prepared to run the business..

Other than this there are certain qualifications that an individual needs to have in order to qualify to run an A & W franchise. These include a net worth of $250,000, liquid cash of approximately $360,000 and prior business and restaurant experience.

A & W restaurants have extremely strict criteria that franchisees need to pass as they believe that only the best of the people can be able to run their restaurant. There are a number of rounds through which an individual has to go in order to qualify for the franchise.